Business plan Square-it

Bram kepser 2060209 Tutor: Jan Luijks

Daisy Bax 2059891

Kris van der velden 2063980

Bart van Drunen 2060956

Antoine Scala 2105995

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Preface The process of writing the business plan went very well. We are glad to see that everybody worked

on it well, and were very eager to participate on this. It was a great learning process for everybody,

especially for the ones who never wrote a business plan before. Now they experienced what to

describe when a business plan has to be written. We would like to thank Robert Nahon and Jan Luijks

for their guidance during the process.

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Management summary The square-it is a small key chain you can put on your keys, wallet, bag or any other thing. By an

application on your phone you will be able to prevent losing your possessions, or find them easily if

you still lost them. It has a Bluetooth connection and can be found by letting it make a sound, or by

your last gps location when you still had you Square-it.

The general goal for his business plan is to position our product the right way on the right market.

Beside this goal there are specific goals for the company itself. These goals are as follows:

By January 29th, before the liquidation of the company, 100% of the stock has to be sold. There has

to be a cost efficiency policy, to keep the costs as low as possible. Providing the best service possible

to the clients. Helping them with the installment and guidance of the app and product. Creating a

professional image for the company, even if it is a student company to really participate within the

industry.

The target group of Square-it is students from 19 till 25 years old living in North-Brabant, the

Netherlands. Statistics are showing that almost all of these people are in possession of a smartphone,

which is needed for the key finder. Research shows that there is no difference in interest by gender,

so the focus will be on male and female. The target group can be found online at social media, at

universities and at bars in the weekend. The persona John describes a person from our target group.

Square-it is positioned with a lower price and higher service than the competitors. Because the

company is a student company, the price can be lower than competitors. With this positioning it is

possible to say that Square-it is the strongest on most of the points. It is necessary to stay innovative

and hold this line.

The marketing mix is a combination of the four p’s: Product, price, place and promotion. The product

is the key finder itself with all the functions and the need of the customer what Square-it solves. As

described in the positioning, our price is lower than the competitors. The price is €12,50, what will be

paid by 60% of the people if we look at the results of the market research. The subject place will

describe where the key finder will be sold, this will be done by online and offline selling. The

promotion of Square-it will be done by several ways, the most important ones are Facebook, a

website and word of mouth advertising.

The activities of the company has been described by using the value chain to get a clear view at the

end if all the activities were profitable enough and if there need to be any changes. The subjects

infrastructure, human resource management, technological management, purchasing, incoming

logistics, operations, outgoing logistics, marketing & sales, service and the margin at the end.

For choosing the right strategy for the company the generics competition strategies has been used to

choose the right strategy. The best strategy for Square-it is the cost leadership. Which means that

Square-It focus on having the lowest costs for the customer.

The financial part shows all the financial factors and numbers which are relevant for the company.

The financial part exists of a data sheet, profit and loss account, cash flow, opening balance and the

closing balance. With all these numbers Square-it is able to see all the purchases, sales, costs and the

profit at the end.

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Table of Content Preface ..................................................................................................................................................... 3

Management summary ........................................................................................................................... 4

Introduction ............................................................................................................................................. 6

Project Team ........................................................................................................................................... 7

Product .................................................................................................................................................... 8

Goals and Objectives ............................................................................................................................... 8

Target Group ........................................................................................................................................... 9

Market Positioning ................................................................................................................................ 11

Value proposition .................................................................................................................................. 12

Marketing mix ....................................................................................................................................... 13

Product .............................................................................................................................................. 13

Price ................................................................................................................................................... 13

Place .................................................................................................................................................. 14

Promotion .......................................................................................................................................... 14

Business system and organization......................................................................................................... 15

Brand Values ...................................................................................................................................... 15

Value Chain ............................................................................................................................................ 15

Strategies ............................................................................................................................................... 17

Company Factors ............................................................................................................................... 17

Value Discipline ................................................................................................................................. 17

Customer Relationship ...................................................................................................................... 18

Strategy conclusion ........................................................................................................................... 18

Finance .................................................................................................................................................. 19

Business model Canvas ......................................................................................................................... 20

Bibliography ........................................................................................................................................... 21

Appendence .......................................................................................................................................... 22

1.1 Finance data .......................................................................................................................... 22

1.2 Profit & loss account ............................................................................................................. 24

1.3 Cash flow ............................................................................................................................... 25

1.4 Opening Balance .................................................................................................................... 26

1.5 Closing Balance ...................................................................................................................... 26

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Introduction Square-it is a young college start-up company that consists of five students from different studies.

Different studies bring different experience with them, this combination makes sure this company

will succeed. All five students are currently following the minor International Entrepreneurship, and

that is where this company started, in September 2015. The core product which is the foundation of

this company is a Bluetooth & GPS key finder. This key finder is not just a key finder, it works with

Bluetooth and GPS instead of a whistle so it works more effective. Besides that it has an app called

Small Lovely in which you can control and personalize your key finder.

This key finder is thin and compact and can be attached to a lot of different items, for example: your

keys, wallet, phone, bags, purses, but also your dog or kid for when you let your dog loose or go to a

crowded city with your children.

To make sure this great product will succeed in the Dutch market, we did a complete Market

Research that help us making important decisions and have a guideline. With our Market Research,

we already know how to sell, how earn more money by selling to a particular target group, what the

customers’ preferences are, and where we could avoid loss of money by keeping an eye on our costs

with the financial file we made. All this information will help us to build a good Business Plan that is

needed to run a company in the right way.

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Project Team The Group 8: Square-It

In this table, we can see that everybody is operating on different sectors.

Bram is the CEO of Square-It. He is the person who is arranging the meetings with the

other employees of Square-it. He is keeping in touch with teachers to deliver them

our work, dividing all the tasks and advising us about advisory skills. He is the leader

of the team, like that there is more communication and it’s easier to work as a team.

Daisy is our marketing Manager. She is our contact person that is talking with Avans,

the contact person for Den Bosch and Christmas markets. She also arranges the

business cards and thinks of ways to make the customers aware of the product.

Kris is the purchase manager. He is the person that keeps in touch with the supplier

and places the orders. He also helps with the marketing.

Bart has a financial background, so he is able to build our financial file, containing:

profit & loss account, cash flow forecast and our balance. He made a complete

overview that makes easier to see how much we spend, where we could save more

money and earn more money. He also is in charge of administrating every purchase

and sale Square-it makes.

Antoine is the Sales Manager of the company, his goal is to find different channels,

identify customers’ needs and extend our market. He must find customers and

provide them with a product of quality as fast as possible, and make reductions if

there is a large amount of quantities ordered.

This are all the employees of Square-it. They are all enthusiastic and willing to help each

other. Communication, organization and respect are the three key factors Square-it is

building on.

Name Manager Address e-mail Phone

Bram Kepser General

Manager

Hunzestraat 14

5704GT Helmond

bramkepser@hotmail.com 06-30292721

Daisy Bax Marketing

Manager

Burgemeester

Loeffplein 22

5211RZ Den Bosch

daisybax@msn.com 06-50549358

Kris van der

Velden

Purchase

Manager

Tempelierstraat 6,

4261DD Wijk en

Aalburg

kris_velden@msn.com 06-51465305

Bart van

Drunen

Financial

Manager

Bloemendaalweg 18

5143 NB Waalwijk

Bartvandrunen1@gmail.com 06-28808839

Antoine Scala Sales

Manager

133Onderwijsboulevard

5223DE

‘s-Hertogenbosch

afp.scala@student.avans.nl 06-46682454

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Product The product of Square-it is the key finder. A small and compact key ring with GPS and Bluetooth

connection, built in order to find possessions that have been lost. Think about the time and the

money that will be wasted when any kind of possession has been lost, for example: your phone

before a meeting. How much does it cost to buy new car-keys, where did you put your wallet while

you were in a commercial centre? There is no need to be worried anymore, Square-it has the

solution: Square-It!

The Key-finder can be attached to every kind of possession. You will be sure to keep your belongings

with you. In the application, downloaded on your phone, it is possible to search for the key finder

and see where is has been lost the last time in order to find it easily. It will also send a notification at

the moment when it is disconnecting with the phone. This key finder is also a phone finder: press the

button on the key finder three times and your phone will make a sound so you can also find your

phone. This is an extra addition to the key finder that a normal key finder does not have. Last but

definitely not least, it also has a selfie function on it. Put your phone down, or from a distance, push

the button on the key finder and your phone will make a picture. This is very convenient when you

want to make a group picture.

The last point is that the battery is replaceable, and the cycle life is about six months: very easy for

customers to solve the problem by themselves if there is, and they won’t have to pay more to get

other batteries.

The key finder is not well known in the Netherlands, this was proven by the surveys and interviews

which have been done, only few people answered that they have seen this product on internet. The

Square-it is a key finder with a Bluetooth connection and selfie remote function, and a lot more

advantages. These characteristics cannot be found on other type of key finders, what makes the

Square-it a unique, innovative and useful product.

Goals and Objectives Square-it just started less than 2 months ago, and already defined some goals and objectives for the

company:

1. By January 29th, before the liquidation of the company, 100% of the stock has to be sold.

2. There has to be a cost efficiency policy, to keep the costs as low as possible.

3. Providing the best service possible to the clients. Helping them with the installment and

guidance of the app and product.

4. Creating a professional image for the company, even if it is a student company really

participate within the industry.

The company is always looking for solutions when problems occur, and when the goal is reached,

there will be the attempt to reach another one.

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Target Group By doing the market research, a target group has been chosen after analyzing the results of the

surveys and interviews. Out of these results came that the group or people in the age from 19-25

years old are most interested in our product. Beside this, they are also the group which mostly have a

smartphone. Which is needed for the key finder. These findings will be described in this chapter.

As described in the introduction,

there have been several studies to

launch the product by the best way

on the Dutch market. Interviews,

online surveys, and the activity on

our Facebook page revealed that

most of the people interested to buy

Key- Finder are aged from 19 to 25

years old. The biggest focus will be

on this group, but there are a lot of

potential customers outside of this

group. Because of this fact the focus

will not be too much on just one group. Then, “connected” people will be more able to buy it. The

researches show also that there are just few more women than men who like the product (56% and

44% for men), what can be seen as no difference. For this reason there will not be a focus on a

specific gender.

The target group “students from 19 till 25 years old” is very active on social media and internet in

general. The Netherlands counts around 1.2 million students.1 Not all of these fit in the core target

group because they are also below 19 years old and over 25 years old, but in general they are

between this ranges of age.

The target group can mostly be found online2 and at universities. Beside these places they can be

found at sport clubs in the weekends, for doing their sports and in pubs and bars in weekend

evenings.

To give a good view about our target group, a persona will be described. This will be a typical person

who could be in our target group.

My name is John, I am 22 years old and I am doing

a business study at Avans University

Hertogenbosch. I have started this study 2 years

ago what means that I have 2 years left now. Since

2 years I also live in‘s Hertogenbosch in a flat with

other students. Before this I lived with my parents

in Vlijmen. In the weekends I work in a clothing

store in the centre and I play football on Saturdays.

In the evenings I mostly hang out with friends or I

am playing games on my computer. Every day I

keep in touch with my friends by my smartphone

who live still in Vlijmen with their parents.

1 https://duo.nl/organisatie/pers/aantallen.asp

2 https://www.surfspace.nl/artikel/1292-digital-natives-onder-de-loep-ict-gebruik-en-wensen-van-studenten/

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Moreover, 81% of people who have been polled

said that they are more willing to buy the key finder

on internet, through online channel. More and

more people are using e-business or are purchasing

on internet, asking on forums, so we need to keep

in touch with new technologies and new ways of

consuming. In this way we are sure to generate

curiosity, be present on several types of markets,

develop our marketing, and get more customers.

The Square-it key finder is one of the cheaper

models with more advantages, so this product stays

competitive and we Square-it will make the key finder more attractive for customers, also by going to

markets, calling companies like car-rentals, key repair shops, festival organizers. In this way there will

be a mouth-to-mouth advertisement.

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Market Positioning This chapter shows how the company Square-it position it selves. The positioning shows who they

are, what they do, what is unique and where they stand in the market.

Square-it who?

Square-it is a student company that offers one specific product, the Square-it key finder. A

multifunctional Bluetooth/GPS key finder, with a phone finder, selfie function and application is

included. Focusing on the modern young population of 19 to 25 years olds with a smart phone, but

besides on the side Square-it also sells to the other age groups.

The company uses various distribution methods which will be further explained in the marketing mix,

with an eager positive setting. The company offers service and is willing to help the customer in any

way possible.

But what is so unique? This company’s focus is clear: Square-it key finder, target group 19-25 years

old, offering service where possible and all this for one single product. As less costs as possible, this

counts for the purchasing, distribution and the selling possibilities. This way Square-it can offer a

lower price, besides that the company wants to add more value, such as packaging, app installation

and answering all questions of the customer.

Short recap: Square-it is a student company with a single product, the Square-it key finder.

Everything is low cost, which means low selling price and for added value they offer service as high as

possible for the customer. Compared to other companies that sell key finders the positioning matrix

is as follow:

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Value proposition The main question that has to be answered in this chapter is: "Why should the customer buy the square-it key finder?" This is a very easy question to answer, because the key finder is a product that everyone will use when they lose their belongings once in a while. Unlike other key finders, the square-it key finder has more options, like a phone finder and a selfie function, cost less, is easy to use and it will keep track of all your belongings. You can take your time to enjoy life and never have to worry about losing your items and searching for your belongings ever again. Not only the key finder has a value for the customer, but also the service square-it will provide with every key finder that is sold. Square-it is able to give the best service because of the compact company. The company can be contacted online, by phone and on offline places such as the market. You will get an answer right away because of the direct communication within the company square-it. Service has a high value within the company. The company helps the clients with the installation of the application and showing how to use the product. What could it all be used for and how could it be helpful for them. And Square-it wants the customers to rely on them, if they experience any issues then they should know that we are there to help them! The important values that the company shares to the world is: A cheap, multifunctional key finder device with a great service to help the customer with the application and the product.

“If you choose to not deal with an issue, then you give up your right of control over the issue

and it will select the path of least resistance.” ― Susan Del Gatto

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Marketing mix The Marketing mix is a combination of instruments which an organization can use to decide what

marketing strategy they should use (Muilwijk, Marketingmix, n.d.). The four factors of the marketing

mix are: product, price, place and promotion. A marketing plan is made by deciding how these

factors can be used to reach your customers and create extra value.

Product The first point which has to be addressed, is what the customer wants from the product and what needs it has to satisfy (Mind-tools-editorial-team, n.d.). The key finder is a product that solves a certain problem for the customers. People don’t want to lose their keys and other belongings anymore, so they buy a key finder to help them find their belongings. The Square-it key finder helps the customer to find their belongings easily and fast, it also helps the customer to find their phone quickly. So the needs of the customers are met. As an extra the Square-it key finder has a remote selfie function. This option is not something a lot of customers will use but it is a feature which can catch the eye of potential customers. The second point is: how and where will the customer use the product (Mind-tools-editorial-team, n.d.)? Customers will mostly use the key finder at home to locate certain belongings with the radar which can be used by entering the app on their phone. But the key finder will also be used when people notice they don’t have their belongings near them and search them by using the GPS function, this can be done anywhere. The last point is: what does the product look like and what is preferred by the customers (Mind-tools-editorial-team, n.d.)? The Square-it key finder is a compact keychain in a square shape. It is available in the colours black, white and blue. The customers like the black and white ones the most but some customers are happy with the option to get a more colourful one. Most of the customers think the shape is perfect.

Price The first point which has to be addressed is what the value of the product is to the buyer. In a survey done by the members of Square-it 60% of the participants is willing to pay 12, 50 for the key finder (for the total results of the survey see the appendices). So the average value of the product to the customer is close to €12, 50, maybe even a little higher. The second point is the established price for other key finders in the area. All key finder which are available on the big trading websites like bol.com and kieskeurig.nl start at a price of €18, - . So if the Square-it key finder is priced at €12, 50 the price is lower than the prices of the competition and the price is close to the price the customers are willing to pay. The third point is about giving discounts. On the key finder market the profit margin isn’t really big so if discounts are given the profit margin will be almost non-existent. Because of that it was decided to only give a discount if a customer buys ten key finders at ones, the discount will be that the customer receives the 10th product for free.

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Place At first people can look for the key finder at the following places:

- The market at ‘s-Hertogenbosch. Everyone who wants to go for some shopping on the

Wednesday or Saturday will walk by.

- The Christmas fair. Mostly adults will come to this fair to buy gifts for the holidays. Although it

is possible to reach children, because the adults can also buy the key finder for their children

or grandchildren.

- The website. Children at young age know how to use social media and internet, but they need

the approval of their parents if they want to buy something on the web. For adults and

teenagers/students it is very useful to have a website. They can see what the key finder is and

they can order it themselves if they are interested.

- The market at Avans ‘s-Hertogenbosch. This market will make sure the group off HBO-

students that study in ‘s-Hertogenbosch will be reached.

At second Square-it can get access to the right distribution channels, because of the contacts the

company has. There was already contact with the people who are necessary at Avans University and

the other contacts are contacted by phone.

At third the competitors have more expensive products and sell them most of the time online. It is

impossible to learn from them because they are selling the products differently and this is not a

student company who is going to work for four months, but a bigger and real company.

Promotion At first the company Square-it is going to promote the key finder by a lot of different ways:

Offline:

- Business cards;

- At Avans University television screens advertising;

- At Avans university posters and a movie;

- Word-to-Mouth advertising.

Online:

- Website;

- Facebook.

At second we can promote our product at best during the holiday season. People want to buy a

present for their friends or family and the key finder is the present that they can give! It is also very

important to go further with the promotion after the website and the video are done. If people are

interested and they want to find our product on internet, they will lose their interest when they don’t

find anything or they only find something that is not ready.

At third the other companies do not work with promotion, because they think their product will sell

itself. They only have a site where people can find them. A different key finder is promoting there

product on Groupon. Only this product is does not have the same functions as the key finder of

Square-it has (Mind-tools-editorial-team, n.d.).

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Business system and organization In this chapter the inside of the business will be explained. What are the morals of this company?

What does it stand for? How does the value chain look like and what are the main strategies of the

company? This will all be clear after reading this chapter.

Brand Values What are the morals of this company and what does it stand for?

Vision: ‘’Square-it stands for a better future, with less lost possessions!’’

Mission: ‘’Giving our fellow humans the opportunity to keep track of their possessions.’’

Slogan: ‘’Lost it? Just Square-it!’’, ‘’Square-it, find a better future’’

This way the company shows that it is really all about helping people. This is our core business!

Value Chain The value chain, by M. Porter shows all the activities inside the company, with at the end a margin to

see if these activities have been profitable for the company and the total profit (Muilwijk,

Intemarketing, N.d.).

Infrastructure

The Infrastructure inside the company will be in two different ways. Communication between

employees will be done by WhatsApp, e-mail, phone and face to face by having meetings.

Documents will be handed out between employees by using dropbox, in this way everyone will

always be able to reach the documents related to all activities inside the company. There is no real

physical infrastructure by traffic.

Human Resource Management There are not a lot of human resource management activities inside the company. This is because of

the fact that it is a student company, which does not really have any selection of potential

employees, a training for employees or other different factors which could fit inside Human Resource

Management. All employees of the company are following classes related to international

entrepreneurship, which will train them in their skills on this market.

Technological management All of the products are developed by another company, Square-it can be seen as a reseller, which

means that they only buy available and already developed products to sell to the customer. Because

of the fact that Square-it is a reseller, they do not have any development, but they do need research.

Only at the start of the company a research has been done to get insight in the market for the key

finders, which could be seen as an ad-hoc research.

Procurement All products will be purchased in Shenzen Raycan Technology Co., Ltd, China. All purchased goods will

take a week to arrive in The Netherlands, with this relative short time it is possible to deliver b2b very

fast. Orders will be at least 100 pieces, what is the minimum order quantity.

Incoming logistics All key finders will be delivered by DHL air shipping from China to Wijk en Aalburg. The key finders

will be stocked here, and transferred by car to the markets or other employees of the company.

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Operations There are not a lot of operational activities. Most ordered products are already packaged and ready

to sell, these will be sold in this package. The only change of the product will be made at the

Christmas fair. There will be a Christmas related packaging added to prepare the product as a gift,

ready to give straight away.

Outgoing logistics In general there are three ways of selling our product, online, offline on the markets and offline by

personal approximation. Products sold offline will be delivered directly at the market or personally by

the sales person, directly or just a few days later. Online sales can be done by Facebook or the

website, by this way the products will be delivered by letter mail directly to the seller.

Marketing and sales

A website and a Facebook page will be used as online marketing, the website will be for general

information about the product and can be used to order products by e-mail, to keep the costs low

there will not be a real web shop. Reaching business to business clients will be done by phone calls,

e-mails and visiting the potential companies. Business cards will be used here as marketing to leave

our contact information for the potential company.

Toilet screens and television screens inside Avans will be used as marketing to create a well-known

product for the students inside Avans, and outside by mouth to mouth advertising by these students.

Our flyer with a short but clear description about the key finder will be showed here.

This flyer will also be on the website of the Christmas fair in Den Bosch where Square-it will be

standing in November 2015. The Christmas market is used as a marketing tool to create awareness

around the key finder, business cards will be handed out to create more word of mouth advertising.

Service The service for the key finder is that all key finders will be replaced or repaired when they are broken

before the liquidation of the company. At the markets customers will have the service to download

the application for free, on a hotspot from Square-it for saving data for the customer. Installation of

the product can be done also directly if wished by the customer to serve them as good as possible.

Marge The total income minus the total costs will result in the total profit. Total profit / total income x 100 =

the marge. These calculations can be made at the liquidation fase to find out if all activities have

delivered enough money to be useful and profitable.

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Strategies The vision and mission of the company need to be executed. The ways to do this is defined by the

strategy. There are several sides of the company that need a different strategy, there are: company

factors (Competition, product, market and the needs of the customer), value discipline and customer

relationship strategy.

Company Factors The company factors, are factors the company need to work with. These factors all have a different

model or strategy that shows what to do. There are three company factors:

- Competition

- Product

- Market

Competition strategy

For the competition the Porter model of generics competition strategies will be used to define which

strategy fits the best. In this case ‘Cost leadership’ of the generics competition strategies is the

strategy that is the most useful for the company. The focus is on having a low production and

distribution costs, in this case that means a low purchase price and distribution costs (Kotler, 2009).

This way the product will have a lower price and could we capture a large market share compared to

the competition. This way the company positions itself in a low price segment, which is an attractive

segment for the all-round customer and a good positioning compared to the competition.

Product & market strategy

The product and market strategy is based on the product-/market development matrix of Ansoff.

There are four possibilities in the Ansoff matrix that is based on existing or new products and existing

or new markets. The combination for this company is an existing product on an existing market, this

means market penetration (Kotler, 2009). The thought behind this strategy is that it is an existing

product that needs to get a larger market share by getting more people to use the product, or sell

more products per person.

The ‘Cost leadership’ strategy of the generics competition strategies of Porter in combination with

the market penetration of the product-/market development matrix of Ansoff will be the strategy

that the company Square-it will use to get a large market share in the market of the key finder in

North-Brabant.

Value Discipline The value discipline strategy is about how the company delivers the value that they offer. The value

discipline strategy is determined by the value strategy model of Treacy and Wiersema. It is important

to provide a unique value as a company and this can only be done by focusing on a certain area. Of

course some aspects may overlap but you have to focus on one area. In this case the ‘Operational

excellence’ is the most appropriate value strategy for Square-it because the focus is on low

production/purchasing costs, an effective purchasing process and just in time logistics (Muilwijk,

Intemarketing, N.d.). The company orders when they need it, so they work effective, this is possible

because there is only one product. The company keeps in mind to help the fellow human being by

providing key finders so they keep track of their possessions, but it is a short notice student company

that wants, besides helping the customer, also make a profit. That’s why the operational excellence is

the best strategy for this company.

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Customer Relationship These days it is not only about having the best product, you have to bond with your customers. It is

not a fight about who has more functions or the lowest price, this is combined with who has the best

or can build up the best relationship with their customer. There are several customer relationship

categories that can help the company to build a solid relationship with the customer, for example:

Co-creation, building a community, self-service, automated serviced, personal assistance and

dedicated personal assistance (Osterwalder, 2010). In this short notice the company delivers

personal assistance by assisting downloading the app, explaining how to get the most out of the

product and how to use it.

Strategy conclusion The strategy for the company factors is based on the generics competition strategies of Porter and

the product-/market development matrix of Ansoff, which is a combination of ‘Cost leadership’ and

‘Market Penetration’. With low costs in purchasing and distribution and a low selling price, combined

with expanding the market share by selling more products to more people, or per person. The value

discipline strategy is based on the model of Treacy and Wiersema where the ‘Operational Excellence’

is the best strategy for the company. Low costs, low price, work effective. And last but definitely not

least the Customer Relationship strategy, based on the business model canvas of Alexander

Osterwalder. There are a lot of different ways to build a relationship, but the best and most effective

way for this company in the current situation is personal assistance.

19

Finance To get a clear financial overview for Square-it a data sheet, profit and loss account, cash flow

statement and an opening and closing balance has been put together. All these documents are

placed in the appendices.

Data sheet

In the data sheet all data that is required to make all de financial documents is listed. In this sheet

the expected sales and purchases in all the weeks are displayed. With this information and the

information about the purchasing price, tax percentages and other costs like marketing, travel,

wages and telephone costs all other documents can be put together.

Profit and loss account

The profit and loss account or P&L is a financial document that displays all earnings and costs in a

certain period. De profit and loss account for Square-it consist of nine P&L’s which are made for a 2

week period and a P&L with the totals off all periods combined.

The total income over the whole period is €2.231, 40, the variable costs over the whole period are

€732,16 and the fixed costs are €837,42. These numbers make a total net. Profit before taxes of

€661,82. Square-it has to pay 23% income tax. So the net. Profit after taxes is €509, 60.

Cash flow statement

The cash flow statement is a financial document which shows the flow off real money in and out of

the company. As can be seen in the appendices Square-it starts with 58 shares sold, which means

that at the beginning of the cash flow Square-it gets €1160,- to start their business. With this money

the first stock will be purchased and some costs that have to be paid in advance can be paid. After

the first two periods Square-it will be able to pay everything with the money they earn with their

sales. In the end of all periods Square-it will have €2.131,14 in cash according to the forecast. After

that some taxes still have to be paid. And in the end the profit that is made will be handed out to all

the shareholders

Opening balance

The opening balance is a financial document that shows the possessions and liabilities a company has

at the beginning of a period. In the case of Square-it there is only cash and there are shareholders,

which are both €1160,-.

Closing balance

The closing balance is a financial document that shows the possessions and liabilities a company has

on the end of a period. Square-it will have sold all their stock by that time so the inventory is empty.

The cash that is listed on the closing balance is the same as the cash in the last period of the cash

flow statement. The equity consist of shareholders capital and profit. The profit is the profit

according to the P&L of all periods combined. The other liabilities are taxes that will have to be paid

after the balance date.

20

Business model Canvas This model shows how the company creates, keeps and shows his value. This model shows every

aspect of this business model in one picture. The models exists out of nine bricks:

Customer Segments: This brick is based on target group of the company. The focus is on male &

female, main target group 19-25 years old, but >18 and 26-35 years old were also interested in the

product.

Value Proposition: The value of the company is based on the strategies of the company, providing

low prices combined with a high service.

Channels: The distribution of the company is through the website, telephone and email but also by

the market stands in Den Bosch, Avans University and the Christmas market.

Customer Relationship: The best customer relationship strategy for this company is personal

assistance. Help the customer with the installation of the app and show them how to use the

product, this is also part of the value that the company delivers.

Key Partners: The partners that help Square-it and make this business possible are: Avans University,

Jong Ondernemen, Kerstbeleving, Market of Den Bosch and the supplier Shenshen Raycan

Technology Co., Ltd.

Key Activities: The activities are purchasing and selling the products, making promotion and maintain

the website.

Key Resources: The resources are the knowledge and guidance by Jong Ondernemen, market stands,

web developer and the supplier.

Revenue Streams: The only way to have an income is by selling key finders.

Cost Structure: The cost structure is based on every cost that the company has: Jong Ondernemen,

Website, business cards, market stands, Christmas fare, additional costs and Salary, phone & travel

costs.

21

Bibliography Kotler, P. (2009). Principles of Marketing. Amsterdam: Pearson Education Benelux.

Mind-tools-editorial-team. (n.d.). The Marketing Mix and the 4Ps of Marketing. Retrieved oktober 23,

2015, from mindtools.com: https://www.mindtools.com/pages/article/newSTR_94.htm

Muilwijk, E. (N.d.). Intemarketing. Retrieved from http://www.intemarketing.nl:

http://www.intemarketing.nl/marketing/modellen/tw-waardestrategie%C3%ABn

Muilwijk, E. (N.d.). Intemarketing. Retrieved from Intemarketing.nl:

http://www.intemarketing.nl/marketing/modellen/waardeketen-porter

Muilwijk, E. (n.d.). Marketingmix. Retrieved oktober 23, 2015, from Intemarketing:

http://www.intemarketing.nl/marketing/marketingmix

Osterwalder, A. (2010). Business Model Generation. Hoboken, New Jersey: John Wiley & Sons.

22

Appendence The appendence contain the information about the finance plan.

1.1 Finance data

DataB2C (christmas fair) B2C(normal)

Selling price (excl. VAT) 12,40€ 10,33€

Purchase price product 3,52€

Import tax 4% Import tax is payed when the products arrive in The Netherland

Minimum purchase quantity 50

All sales are done in cash immediately after the sale.

All purchases are done by bank immediately after the purchase.

All stock that is left in the end is sold at purchase price.

When the company was founded no financial transactions were done yet.

Als purchases are done at the beginning of a week, the product will be received in the same week.

Quantity Price Week

Shares sold 58 20,00€ 41

The return on investment will be 10%

Payroll tax 42%

VAT 21%

Income tax 23%

Sales & purchases

Sales (number of

pieces) Sales (Turnover)

Purchase (number

of pieces ) Purchases

week 41 0 -€ 100 352,00€

week 42 10 123,97€ 0 -€

week 43 10 123,97€ 100 352,00€

week 44 10 103,31€ 0 -€

week 45 60 743,80€ 0 -€

week 46 55 568,18€ 0 -€

week 47 55 568,18€ 0 -€

week 48 0 -€ 0 -€

week 49 0 -€ 0 -€

week 50 0 -€ 0 -€

week 51 0 -€ 0 -€

week 52 0 -€ 0 -€

week 53 0 -€ 0 -€

week 1 0 -€ 0 -€

week 2 0 -€ 0 -€

week 3 0 -€ 0 -€

week 4 0 -€ 0 -€

Total 200 2.231,40€ 200 704,00€

Remaining costsJong ondernemen costs:

Jong ondernemen (excl. VAT) 200,00€

23

Marketing costs:

Website (excl. VAT) 6,61€ Payed in week 41

Business cards (excl. VAT) 14,86€ Payed in week 41

Market stand(excl. VAT) 23,00€ Payed in week 46

Christmasfare price (excl. VAT) 195,00€ Payed in week 42

Additional 125,00€ Payed in €25 per period untill week 50

Wages

Made hours p.p. per week 15

Salary per hour 0,20€

Employees 5

Travel (other travel method then by OV)(Payed at the end of every month)

Travel costs per km 0,19€

Total travelled KM per week 10

Telephone (Payed at the end of every month)

Phone costs p.m. 0,02€

Called minutes per week 35,00

24

1.2 Profit & loss account

Week 41 &

42W

eek 43 & 44

Week 45 &

46W

eek 47 & 48

Week 49 &

50W

eek 51 & 52

Week 53 &

1W

eek 2 & 3

Week 4

Total

Income

Turnover:123,97

€ 227,27

€ 1.311,98

€ 568,18

€ -

€ -

€ -

€ -

€ -

€ 2.231,40

€

Variable CostsCost of goods sold

35,20€

70,40€

404,80€

193,60€

-€

-€

-€

-€

-€

704,00€

Import tax

1,41€

2,82€

16,19€

7,74€

-€

-€

-€

-€

-€

28,16€

Total variable costs36,61

€ 73,22

€ 420,99

€ 201,34

€ -

€ -

€ -

€ -

€ -

€ 732,16

€

Fixed CostsW

ages30,00

€ 30,00

€ 30,00

€ 30,00

€ 30,00

€ 30,00

€ 30,00

€ 30,00

€ 15,00

€ 255,00

€

Jong ondernemen

200,00€

200,00€

Telephone1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 0,70

€ 11,90

€

Travel3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 1,90

€ 32,30

€

Marketing

236,22€

19,75€

42,75€

19,75€

19,75€

338,22€

Total Fixed Costs271,42

€ 54,95

€ 77,95

€ 54,95

€ 54,95

€ 35,20

€ 35,20

€ 35,20

€ 217,60

€ 837,42

€

Total Costs308,03

€ 128,17

€ 498,94

€ 256,29

€ 54,95

€ 35,20

€ 35,20

€ 35,20

€ 217,60

€ 1.569,58

€

Net prof (before Taxes)

€ -184,06€ 99,11

€ 813,04€ 311,89

€ -54,95€ -35,20

€ -35,20€ -35,20

€ -217,60€ 661,82

TaxesIncom

e tax€ 152,22

Total€ 152,22

Net. Profit (after Taxes)

€ -184,06€ 99,11

€ 813,04€ 311,89

€ -54,95€ -35,20

€ -35,20€ -35,20

€ -217,60€ 509,60

25

1.3 Cash flow

Week 41 &

42W

eek 43 & 44

Week 45 &

46W

eek 47 & 48

Week 49 &

50W

eek 51 & 52

Week 53 &

1W

eek 2 & 3

Week 4

After Liquidation

ReceiptsTurnover

123,97€

227,27€

1.311,98€

568,18€

-€

-€

-€

-€

-€

Share holders1.160,00

€

VAT26,03

€ 47,73

€ 275,52

€ 119,32

€ -

€ -

€ -

€ -

€

Total receipts1.310,00

€ 275,00

€ 1.587,50

€ 687,50

€ -

€ -

€ -

€ -

€ -

€

Payments

Purchases352,00

€ 352,00

€ -

€ -

€ -

€ -

€ -

€ -

€ -

€

VAT119,38

€ 73,92

€ 4,83

€ -

€ -

€ -

€ -

€ -

€ 202,22

€

Import tax

14,08€

14,08€

Payroll tax expenses107,10

€

Income tax

152,22€

Wages

17,40€

17,40€

17,40€

17,40€

17,40€

17,40€

17,40€

17,40€

8,70€

Jong ondernemen

242,00€

Telephone1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 1,40

€ 0,70

€

Travel3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 3,80

€ 1,90

€

Website

6,61€

Business cards14,86

€

Market stand

23,00€

Christmasfare price

195,00€

Overig

25,00€

25,00€

25,00€

25,00€

25,00€

Total payements

749,53€

487,60€

75,43€

47,60€

47,60€

22,60€

22,60€

22,60€

253,30€

461,54€

Receipts and payments

€ 560,47€ -212,60

€ 1.512,07€ 639,90

€ -47,60€ -22,60

€ -22,60€ -22,60

€ -253,30€ -461,54

Current account at the beginning of the period€ 560,47

€ 347,87€ 1.859,94

€ 2.499,84€ 2.452,24

€ 2.429,64€ 2.407,04

€ 2.384,44€ 2.131,14

Current account at the end of the period€ 560,47

€ 347,87€ 1.859,94

€ 2.499,84€ 2.452,24

€ 2.429,64€ 2.407,04

€ 2.384,44€ 2.131,14

€ 1.669,60

26

1.4 Opening Balance

1.5 Closing Balance

Debet Credit

Current assets Equity

Inventory -€ Share holders capital 1.160,00€

1.160,00€

Liquid assets

Cash 1.160,00€

1.160,00€ 1.160,00€

5-10-2015

Debet Credit

Current assets Equity

Inventory -€ Share holders Capital 1.160,00€

Profit 509,60€

Liquid assets 1.669,60€

Cash € 2.131,14

Short-term loans

VAT Payable 202,22€

Income tax Payable 152,22€

Payroll tax 107,10€

2.131,14€ 2.131,14€

29-1-2016